Adongo Credits GoldBod Strategy for Cedi Stability

The Member of Parliament for Bolgatanga Central, Hon. Isaac Adongo, has credited the Ghana Gold Board’s domestic gold purchase strategy as a key factor in stabilising the cedi.

He rejected claims by the opposition that the government is artificially propping up the currency through a US$1.4 billion injection.

Speaking on the floor of Parliament, Mr. Adongo, who also serves as Chairman of Parliament’s Finance Committee, responded to accusations that the recent appreciation of the cedi was the result of deliberate liquidity support by the government.

He noted that the previous administration injected about US$60 billion into the economy over eight years but still failed to halt the currency’s rapid depreciation.

According to him, the difference lies in how the current administration is leveraging the operations of GoldBod and its domestic gold purchase programme to generate foreign exchange.

Mr. Adongo explained that under the domestic gold purchase programme, government resources are channelled to GoldBod to purchase gold locally, after which the gold-backed foreign exchange earnings are brought into the economy to meet market demand.

“It is a fact that we never pumped $1.4 billion into the economy. What we put into the economy was forex that was generated by the economy,” he revealed.

“If you decide to use GoldBod to buy gold and you make it available to meet your auction in the market, that is not injection of funding; that is pure intermediation of forex,” he added.

He argued that the model has proven more effective than traditional cash injections because it creates a sustained pipeline of foreign exchange inflows directly tied to Ghana’s natural resource wealth.

Mr. Adongo’s remarks come at a time when the cedi has shown signs of recovery, with analysts pointing to increased gold-backed inflows, improved foreign exchange liquidity and gains from the government’s gold consolidation policies.